Core Viewpoint - BigBear.ai (NYSE: BBAI) is positioned as a promising investment opportunity for 2026, leveraging its focus on artificial intelligence and government contracts, which could lead to significant growth potential [1] Company Overview - BigBear.ai develops custom AI solutions primarily for government clients, with some applications in civilian sectors like airport passenger processing [4] - The company’s business model involves creating tailored platforms for each client, which negatively impacts profit margins compared to standard subscription software models [4] Financial Performance - BigBear.ai's gross margins are consistently between 25% and 30%, significantly lower than the typical 70% to 90% margins seen in subscription software companies [5] - In contrast, Palantir Technologies, a comparable company, reported a net income margin of 40%, highlighting a major concern for BigBear.ai's current profitability structure [5] Recent Developments - BigBear.ai acquired Ask Sage for $250 million, which had an annual recurring revenue of $25 million in 2025, indicating a purchase price of around 10 times sales, considered a reasonable valuation given the expected growth [6] - Ask Sage is a generative AI platform targeting defense and national security sectors, which could represent a significant market opportunity and may evolve into BigBear.ai's primary offering [8]